Question

Promissory note contains

• A. an order to pay a certain sum of money
• B. a promise or undertaking to pay a certain sum of money.
• C. Both
• D. None

Answer 1

The correct option is B a promise or undertaking to pay a certain sum of money.

Promissory note contains

B. a promise or undertaking to pay a certain sum of money.

As we know as per defination a promissory note is a written promise to pay a debt.It is a financial instrument in which one party (maker or issuer) promises in writing to pay a determined sum of money to the other (the payee) ether at a fixed determinable future time or on demand of the payee subject to specific terms.